-->Classical, Human Relations & Human Resources Approaches | Machine Metaphor .Theory of Classical Management – Henri Fayol Theory of Bureaucracy – Max Weber Theory of Scientific Management – Frederick Taylor .Maslow’s Needs Hierarchy Theory

1. Week 2
Chapters 2 & 3

2. Objective
By the end of the class you will be able to…
Compare different theories that help to meet the
practical challenges of today’s organizational
world.

3. Approaches
 Classical
 Human Relations
 Human Resources

4. Before the Industrial
Revolution…
 Most of the work was
made by hand, by
individuals or in small
groups.
 A shoemaker would
put together a shoe
from the leather to
finish the product.

5. Mechanization &
Industrialization
 With the
introduction of
machinery,
making a shoe
was divided into
many different
tasks, each
performed by a
different worker.

6. Mechanization &
Industrialization
 The work was moved into factories for a
closer supervision, where large groups of
workers put together a shoe in assembly
line-settings.

7. New Organizational
Forms
 Not only the way people worked changed,
but also how they thought about work.
 Scholars and consultants start providing
businesses and industry advise on best
ways to organize.

8. New Organizational
Forms
 A machine metaphor was used to conceptualize
organizations in:
 Highly standardized
 Specialized
 Replaceable
 Predictable

9. The Machine Metaphor
 Put emphasis on the
importance of
specialization.
 Like a car engine,
where every part
has a specialized
function.

10. The Machine Metaphor
 Carburetor or fuel injector – produce the
proper mixture of gasoline
 Spark plug – ignites the explosion that
drives the piston
 fuel injector & spark plug – necessary for
the proper operation of the combustion
engine.

11. The Machine Metaphor
 Organizations are like machines with the
same kind of specialization.

12. The Machine Metaphor
 Sandwich shop
 Worker 1 - slicing the
bread
 Worker 2 – cutting
meats and cheeses
 Worker 3 – responsible
for vegetables and
condiments
 Worker 4 – bagging
and ringing-up the
order

13. The Machine Metaphor
 This specialization of tasks sometimes is
called Division of Labor

14. The Machine Metaphor
 Organizations are also standardized and
replaceable.
 If parts in one machine are the same as
those in a similar machine, then it can
be easily replaced.

15. The Machine Metaphor
 If a worker on an assembly line quits, a
machine-like organization can easily
replace the worker.

16. The Machine Metaphor
 Organizations are also predictable.
 When a machine breaks, we use
operating manuals to fix it.

17. The Machine Metaphor
 Organizations run according
to specific rules and
standards.
 Dysfunctional
organizations can be fixed
by a rational consideration
of the manner in which
the rules and standards
are applied or misapplied.

18. 3 Theories with
Mechanistic Lens
The 3 of them use the Machine Metaphor
2.Theory of Classical Management – Henri
Fayol
3.Theory of Bureaucracy – Max Weber
4.Theory of Scientific Management –
Frederick Taylor

19. Fayol’s Theory of
Classical Management
 The 1st theory of Henri Fayol
proposed that managing
consists of:
 Elements of management -
what managers should do.
 Principles of management
–how managers should put
the parts of an
organization.

20. Fayol’s Five Elements
of Management
1. Planning
 looking to the future to determine the best
way to meet goals
2. Organizing
 arrangement and evaluation of human
resources
3. Command
 managers set tasks to meet organizational
goals.

21. Fayol’s Five Elements
of Management
1. Coordination
 activities harmonized into single whole
2. Control
 Comparison between goals and activities

22. Fayol’s Theory of
Classical Management
 Communication was not included as one of
the elements of management.
 But it’s difficult to imagine the
performance of the 5 elements without
communication between management and
workers.

23. Fayol’s
Principles of Management
 Checklist of 6 principles of how
organizations should be
managed
1. Scalar chain – strict vertical
hierarchy
2. Unity of command –
employee receive orders
from only one supervisor
3. Unity of direction –
activities with similar goals
should be under a single
supervisor

24. Fayol’s Principles of
Management
1. Division of labor – work can best be accomplished
if employees are assigned to a limited number of
specialized tasks.
2. Order – there should be an appointed place for
each employee and task within the organization
3. Span of control – managers are more effective
with a limited number of employees
 20 to 30 employees for 1st level managers
 6 employees for higher level managers

25. Principles of
Organizational Power
 3 principles of management that deal with
power relationships within the organization
1. Centralization – management has
control over decision-making and
employee activities.

26. Principles of
Organizational Power
1. Authority and responsibility –
managers should hold authority derived
from their positions and personal
characteristics.
2. Discipline – organizational members
should be obedient to the rules of the
organization and to the managers who
enforce them.

27. Principles of
Organizational Reward
 Remuneration of personnel – employees
should be rewarded with appropriate
salaries and benefits.
 Equity – in remuneration, employees
should be treated justly.
 Tenure stability – organization should
guarantee sufficient time on the job for
employees to achieve maximum
performance.

28. Principles of
Organizational Attitude
 Subordination of individual interest to
general interest – individual interests must
always organizational goals first.
 Initiative – managers should value and
direct employees’ efforts to work in the
best interest of the organization.
 Esprit de corps – there should be no
dissension in the organizational ranks.

29. Fayol’s Theory
Summary
 An effective organization is highly structured
and each individual knows where he/she fits.
 A clear structure facilitates how an
organization works.
 Employees are rewarded through the
equitable distribution of monetary rewards,
and are encouraged to labor strictly for the
goals of the organization and not for their own
individual interests.

30. Weber’s Theory of
Bureaucracy
 Weber’s theory has many features in
common with Fayol’s theory. But, in
addition he emphasized:
 the closed nature of bureaucracy,
 the importance of organizational rules,
and
 the predominance of rational-legal
authority in bureaucratic functioning.

31. Weber’s Theory of
Bureaucracy
 Weber identified six facets of bureaucracy:
1. Clearly defined hierarchy
2. Division of labor
3. Centralized decision making and power
4. Closed system – no external influences
5. Importance of rules – should be written
6. Functioning of authority

32. Weber’s Theory of
Bureaucracy
 Weber’s believed that bureaucratic
organizations would eventually dominate in
society because of their technical
superiority.
 He sees bureaucracies as working through
a system of authority, power and
discipline.

33. Weber’s Theory of
Bureaucracy
 According to Weber, there are three types of
authority:
1. Traditional (legitimate) authority
 Power is based on a tradition of
authority and not on abilities, actions or
behaviors.
 People respond to this kind of authority
because they believe in time, custom,
and that time-proven methods are the
best.

34. Good Examples–unlike
charisma
Pope Benedict XVI Queen Elizabeth of
England

35. Weber’s Theory of
Bureaucracy
1. Charismatic authority
 Power is based on personality and
ability to attract and interact with
followers.
 Unstable when followers stop liking
the leader.

36. Good Example-unlike
tradition
Donald Trump Martin Luther King

37. Weber’s Theory of
Bureaucracy
1. Rational-legal authority
 The power is not in a person. It’s
based on formal rules developed and
established laws of the state, which
are usually written down and often
very complex.

38. Good Example-unlike
tradition and charisma
Hillary Clinton Leon Panetta Eric Holder
Secretary of State Secretary of Defense U.S. Attorney General

39. Weber’s Theory of
Bureaucracy
 Weber believes these three authority exist
singly and in combination in organizations.
 Rational-legal authority dominates in
bureaucratic systems, and relies on
rationality, expertise, norms and rules of
the organizations.
 Traditional and charismatic rely on the
position or the individual holding the
position.

40. Weber’s Theory of
Bureaucracy
 The ideal type of authority for Weber is
bureaucracy because rationality is the
guidance force, and individuality is
discouraged:
 Closed system
 Rules, division of labor and a clear
hierarchy
 Power is centralized
 Nopassion, affection or enthusiasm

41. Taylor’s Theory of
Scientific Management
 Taylor, like Fayol, was looking for better
options to run companies. He focused on the
micro level of organizational functioning.
 He was frustrated with typical industry
operations and how people were rewarded at
work.
 He was more concern with the relationship
between manager and employee, and the
control of individual at work.

42. Components of
Scientific Management
 Taylor recommended a scientific method in
which different methods are used to
identify the best way to do each job.

43. Components of
Scientific Management
 Workers should be scientifically selected
to fit each job.
 Workers should be trained in the
methods.
 Managers are best-suited for thinking,
planning and administrative tasks.
 Workers should perform a physical labor
that is planned and directed by
management.

44. How is
communication in
the organizations of
Fayol, Weber and
Taylor?

45. Classical management
in Organizations Today
 3 kinds of communication restricted to
work-related issues:
 Task-related
 Innovation-related (new ideas)
 Maintenance-related (human
relationships)

47. Do you think these 3
classical theories are still
relevant?
1. Theory of Classical Management – Henri
Fayol
2. Theory of Bureaucracy – Max Weber
3. Theory of Scientific Management –
Frederick Taylor

48. What type of machine
metaphor is Goodwin?

49. Classical Structure in
Today’s Organizations
 Division of labor and strict hierarchy
 Military organizations
 Manufacturing and service organizations
 Nonprofit organizations

50. Not All Organizations
Use Classical Structure
 Division of labor blurred
 Cross-functional teams
 Matrixing of tasks
 Freely flow of communication

51. Classical Job Design
and Rewards in Today’s
Organizations
 Often looking for the one best way to
accomplish tasks
 Organizations try to find ways to reduce
the number of keystrokes necessary to
input information and reduce mistakes.

52. Classical Job Design
and Rewards in Today’s
Organizations
 Fitting the job to the individual to
improve satisfaction, reduce turnover
and poor performance
 Skills, qualifications, geographical
location, time preferences, inadequate
earnings, work-family conflicts

53. Classical Job Design
and Rewards in Today’s
Organizations
 Concerned with role of financial rewards in
motivation
 Money is important factor to recruit and
reward employees

55. The Human Approaches
 80 years ago appeared two human
approaches that still influence
communication in today’s organizations.
 Human Relations
 Human Resources

56. The Human Relations
Approach
 Emphasizes the importance of human
needs in the workplace, and the
consideration of management practice and
job design to meet those needs.
 This approach was inspired by the
Hawthorne Studies, a research conducted
to Western Electric Company’s plant’s
employees in Illinois.

57. The Hawthorne Studies
 Elton Mayo from Harvard University and a
research team studied how changes in work
environment on productivity of factory
workers (9 years)
 Illumination
 Tempeture
 Work environment
 Work hours
 Social and emotional needs

58. Explanations of
Findings
 Worker output increased as a result of
attention from managers.
 Hawthorne effect – attention to workers
causes changes in behavior
 Social interaction in the group and open
communication between workers and
managers increased productivity.

59. Explanations of
Findings
 Learn more at the Hawthorne Museumhttp
://www.morton.edu/museum/?nav_id=a2

60. Explanations of
Findings
 The analysis of data suggest Mayo and
colleagues were not correct.
 A re-analyses suggested more traditional
explanations for higher productivity
 Incentives
 Pressure from management
 Worker selection

61. Hawthorne Studies
 Could be best explained as a function of social
factors and the satisfaction of the human
needs of workers.
 Highlighted the role of communications
especially informal and group communication
in organizational functioning.
 Helped to move organizations from classical
theories to human relations approaches.

62. Human Relation
Movement
 Douglas McGregor – Theory X and Theory
Y
 assumptions that managers can hold
about organizational functioning
 Abraham Maslow –Hierarchy of Needs
Theory
 humans are motivated by a number of
basic needs

63. Abraham Maslow’s
Needs Hierarchy Theory

64. Maslow’s Needs Hierarchy
Theory
 Level 1 – Physiological needs
 Needs of the human body
 Breath
 Food
 Water
 Clothing
 Sex
 Sleep
Living wage – satisfies this need

65. Maslow’s Needs Hierarchy
Theory
 Level 2 – Safety/Security needs
 Desire to be free from danger
 Body
 Employment
 Resources
 Morality
 Family
 Health
 Property
A wage, protective & healthy working conditions satisfy this need

66. Maslow’s Needs Hierarchy
Theory
 Level 3 – Affiliation|Social|Love|Belonging
 Give and receive human affection
 Friendship
 Family
 Sexual intimacy
Establishing social relationship with co-workers and
managers helps to satisfy these needs

67. Maslow’s Needs Hierarchy
Theory
 Level 4 – Self-Actualization
 Sense of achievement and accomplishment
 Public recognition - external
 Attention - external
 Confidence - internal
 Achievement – internal
 Accomplishment - internal
Compensation & rewards structures (external)
Challenging jobs to achieve and excel (internal)

68. Maslow’s Needs Hierarchy
Theory
 Level 5 – Self-actualization
 Desire to be all that you can be
 Morality
 Creativity
 Adventure
 Problem solving
 Risk
 Control of your life
A job that allows a worker to exercise responsibility and
creativity in the workplace satisfies this need.

69. A person does not feel a higher
need until the needs of the current
level have been satisfied

70. Hierarchy of Needs Exercise -
http://www.wisc-online.com/objects/ViewObject.aspx?ID=I2P401

71. The Human Resources
Approach
 The model of employee needs was insufficient
to describe and manage the complexities of
organizational life.
 There was concern about whether the human
relations principal worked and whether they
could be misused by organizational
practitioners.
 Studies showed that satisfaction and
performance had to do with cultural aspects.

72. The Human Resources
Approach
 It’s an extension of the human relations
framework in which higher-order human
needs are fulfilled through organizational
activities.
 Recognizes that people in organizations
have feelings that must be considered.
 Individual labor is an important ingredient
to meet organizational goals.

73. The Human Resources
Approach
 Aspires to maximize both: organizational
productivity and individual need
satisfaction.
 How? – with the employees creative
ideas

74. How is Communications
in Human Relations
Organizations?
 Maintenance communication
 To maintain the quality of human
relationships
 Innovation communication
 To have the input of employees on how the
job can be done better, new products,
different ways to structure the organization

75. Table 3.2: Communication in Classical, Human Relations,
and Human Resources Organizations

76. Human Relations and
Human Resources in
Organizations Today
 We can see human relations ideas in the
attitude of management toward employees
 Now, they consider human factors

77. Human Relations and
Human Resources in
Organizations Today
 Human relations principles can be seen in
job design
 New tasks consider the needs on the
higher levels

78. The “What” of Human
Resources Programs
 HR use programs that ensure products or
service quality and organizational
productivity
 Team management
 Employee involvement

79. The “What” of Human
Resources Programs
 The goal of the HR programs
is to create a knowledge-
enabled organization in
which the collective
knowledge of workers
facilitates high performance.

80. The “How” of Human
Resources Programs
 Research suggests these HR programs
often don’t work.
 They are created with great optimism,
but few are managed for success.
 Some of these programs, like TQM have
been discontinue because failed producing
results.

81. Points to be considered
by Human Resources
 Team-based management needs to be
appropriate
 Attitudes of top management
 Cynicism about change: involve
employees, reward supervisors and
minimizing surprises
 Facilitate the translation process – explain
new terms